The hearing will start at 7:00 p.m. at the Arlington County Board offices at 2100 Clarendon Blvd. Residents can sign up to be one of the speakers commenting on the tax rate at the hearing.
County Manager Barbara Donnellan has proposed holding the property tax rate steady at $1.006 for every $100 in assessed value. Because the County Board advertised no change to the tax rate, it can now only set a tax rate at or below the current rate.
Currently, technology firms located in the Rosslyn-Ballston corridor, Crystal City, Columbia Pike and Shirlington only have to pay 50 percent or less of the county’s standard business license tax rate, 36-cent per $100 of gross receipts. For tech companies with between 500 and 999 employees, the rate is 14 cents. For tech companies with more than 1,000 employees, it falls farther to 10 cents.
Tech companies located along the Pike or in Shirlington have no minimum for the amount of employees to qualify for the reduced tax rate. However, in the R-B Corridor and Crystal City — the county’s two “Downtown Technology Zones” — tech firms must have at least 100 employees to pay the 18-cent rate. The County Board could approve waiving the minimum at its meeting this Saturday.
County staff is projecting that Arlington will collect $20.8 million more in taxes than originally budgeted for, led by a $23.4 million increase in real estate tax revenue. Another bright spot an additional $3 million from personal property taxes. The increases are due to higher-than-expected real estate assessments and strong new car sales and used car values, according to Donnellan.
Some county revenue is lower than expected, however. Sales taxes are projected to be down $2.6 million, hotel taxes are down $2.1 million, fines are down $2 million and cigarette and communication taxes are both down $300,000.
The county said Friday evening that it will take a look at “all commercial real property assessments with a 50% or greater increase from calendar year 2013.”
There are nearly 90 such properties, including Rien Tong restaurant (3131 Wilson Blvd), which saw its assessment increase 197 percent, and Spider Kelly’s (3171 Wilson Blvd), which saw its property valuation increase 83 percent.
Long-time businesses, which have not been renovated or sold recently, saw their assessments increase by double digit or even triple digit percentages. The rise in assessments could mean the owners will be forced to pay tens of thousands in additional county taxes this year, barring a successful appeal.
The biggest increase spotted by ARLnow.com was that of Rien Tong Restaurant (3131 Wilson Blvd). The Asian eatery, located across from the Clarendon Metro station, saw its assessment jump from $559,900 to $1,667,600, a nearly 200 percent increase that would result in an extra $12,528 in taxes.
That means that the tax rate can only go down or remain the same ($1.006 for every $100 in assessed value) in the Board’s budget, which will be crafted over the next two months before final approval on April 22.
Two residential fees, meanwhile — the water-sewer rate and the household solid waste rate — are proposed to increase 3.4 and 2.4 percent respectively in County Manager Barbara Donnellan’s budget, which will be used as a jumping off point by the Board.
Donnellan is proposing no increase in real estate and stormwater management tax rates, which impact homeowners. The combined tax rate would remain $1.006 for every $100 in assessed value.
With Arlington residential property assessments rising 5.9 percent this year (5.3 percent for single family homes), homeowners will pay more in taxes under Donnellan’s budget, despite tax rates holding steady. The average Arlington household will pay $7,371 in county taxes and fees, a $368 or 5.3 percent increase over last year.
If you want to get a head start on your taxes, instead of waiting until the minute, Bobby Grohs — who does our taxes — is back again to give some free tax-related advice.
A Certified Public Accountant and University of Maryland grad, Grohs started Arlington-based Tax Matters LLC in 1998. He specializes in “comprehensive tax and consulting services for clients ranging from individual taxpayers, small businesses and nonprofits located throughout the greater Washington metropolitan area.”
The legislation, introduced by Sen. Adam Ebbin (D-30), passed the state Senate Jan. 20 by a unanimous 38-0 vote — the Senate is missing two votes until new Lt. Governor Ralph Northam and Attorney General’s Mark Herring’s seats are filled via special election — and is waiting to be considered by the House of Delegates Finance Committee.
As of January 2013, the state started only doling out tax rebates via direct deposit or a debit card, which comes with associated costs, like ATM and transaction fees. The Senate Finance Committee voted to abolish the debit card option altogether if the bill is signed into law.
Arlington County said today that its overall 2014 real estate assessments rose 5.8 percent. The growth was “fueled primarily by strength in the residential market, as well as new construction of commercial properties,” the county said.
The assessments for residential properties — single-family homes, condos and townhouses — rose 5.3 percent, to an average of $552,700.
It’s a good decision — by getting started now can avoid some headaches as the April 15 IRS tax filing deadline approaches.
For those early birds out there, local tax guru Bobby Grohs is back to dispense free tax-related advice.
There’s an immediate need for people to help this week with sorting and distributing donated coats, or next week with distributing donated children’s holiday gifts. In the coming months, people are asked to help out with tasks like income tax preparation.
Numerous opportunities can be found on the Volunteer Arlington website, such as the following:
